The Diversification Weighted Equity Global Quant Core is an all ETF equity model created to provide superior long term global performance. Model construction is heavily systematic and quantitative.
Gravity uses a proprietary quantitative scoring system that evaluations each country on the basis of several factors. Based on the studied relationships between each factor and expected returns Gravity reduces, normalizes and converts the factor data to provide an idiosyncratic expected return value that is designed measure an expected return differential juxtapose a world equity benchmark.
We take the best scoring ETF’s and combine their scores with the assets True Diversification® to create the weights.
|Net Exports||Countries who export more than they import bring money into the country some of which flows to the stock market|
|Gov Debt||Governments with large cumulative debts are not able to continue to finance the debt and are at risk to their reputation and currency value around the world|
|Gov Size||Governments tend to be a less efficient allocator of resources than the private sector. Countries where the government is a smaller % of GDP are thus more likely to have greater productivity and economic adaptability|
|Unemployment||High unemployment in any country is a sign of weakness that tempers growth prospects|
|Inflation Rate||Some inflation is good, but too much inflation introduces financial chaos and uncertainty; poor conditions for reliable widespread stock performance|
|Purchasing Power Parity GDP Change %||
|Education System||Knowledge work is globally portable; more than most industries, this allows citizens to capture higher paying jobs and develop and investing middle class|
|Economic Freedom||Freedom from corruption, over-regulation, over taxation and injustice set the conditions in which capitalism can thrive|
|Interest Rates||High interest rates act as competition to returns on stocks and are thus negative to stock performance|
|Credit Expansion||When credit expands a multiplier effect helps to expand the economy|
|Labor Force Participation||A larger % of the population participating in the workforce helps productivity and growth|
|Valuation||Buy Low. Sell high. When you are buying low you are getting value.|